ED attaches Rs 114.19 crore properties in Sri Guru Raghavendra Sahakara Bank Niyamitha scam

The Enforcement Directorate has attached properties worth Rs 114.19 crore pertaining to the various defaulter borrowers of Basavanagudi's Sri Guru Raghavendra Sahakara Bank Niyamitha, under the Prevention of Money Laundering Act.

The ED had taken up the case, based on the FIR registered against the bank office-bearers, staff and defaulters with the Bengaluru City police, in connection with misappropriation of public deposits to the tune of Rs 800 crore.

According to the statement of ED, the attached assets are in the form of 21 immovable properties comprising vacant lands, residential buildings, commercial and industrial buildings and movable properties in the form of bank balance of Rs 3.15 crore.

The ED has so far arrested four persons in the case, including the then president of the bank, K Ramakrishna, and had earlier attached movable and immovable properties belonging to the accused persons valuing to Rs 45.33 crore and the same was confirmed by the competent authority.

Rajesh V R, 50, one of the major beneficiaries of the fund siphoned off from the bank, was arrested by the ED in February.

During the investigation, the ED has found defaulter borrowers in connivance with the management, and employees of the bank, had taken huge amount as loans on the basis of bogus deposits and fake Fixed Deposits (FDs) and siphoned off the money deposited by the public with the bank.

The bank had promised to give a higher interest rate to the depositors, which was not in the line with the prevailing market rate. Most of the senior citizens had deposited their retirement funds and other hard-earned money with the bank, after getting attracted to the higher interest rate.

The bank had given loans to many without obtaining proper security for the loans. The borrowers, who have taken loans without giving adequate security, did not repay the same and the loans become overdue, the ED said.